Zacks Investment Research cut shares of Sonic Corp. (NASDAQ:SONC) from a buy rating to a hold rating in a report published on Tuesday morning.
According to Zacks, “Sonic Corp. operates and franchises one of the largest chain of drive-in restaurants in the United States. Sonic restaurants offer made-to-order hamburgers and other sandwiches and feature Sonic signature items, such as footlong coney cheese dogs, hand-battered onion rings, tater tots, specialty soft drinks, including cherry limeades and slushes, and frozen desserts. At a typical Sonic restaurant, a customer drives into one of 24 to 36 covered drive-in spaces, orders through an intercom, and has the food delivered by a carhop within an average of four minutes. “
A number of other equities research analysts also recently issued reports on SONC. Bank of America Corporation downgraded Sonic Corp. from a buy rating to an underperform rating and upped their price objective for the company from $27.00 to $30.00 in a research report on Tuesday, June 13th. BidaskClub downgraded Sonic Corp. from a strong-buy rating to a buy rating in a research report on Saturday, June 17th. Cowen and Company increased their price target on Sonic Corp. from $23.00 to $25.00 and gave the stock a market perform rating in a report on Friday, June 23rd. Stephens reiterated an overweight rating and issued a $32.00 price target on shares of Sonic Corp. in a report on Monday, June 26th. Finally, Oppenheimer Holdings, Inc. reiterated an outperform rating and issued a $29.00 price target on shares of Sonic Corp. in a report on Monday, June 26th. Three research analysts have rated the stock with a sell rating, nine have assigned a hold rating and five have issued a buy rating to the company. Sonic Corp. has an average rating of Hold and an average price target of $27.61.
Shares of Sonic Corp. (SONC) traded up 0.58% during trading on Tuesday, reaching $24.38. The company’s stock had a trading volume of 68,027 shares. Sonic Corp. has a 12-month low of $21.12 and a 12-month high of $30.05. The company has a 50 day moving average of $24.05 and a 200-day moving average of $25.85. The stock has a market cap of $1.02 billion, a price-to-earnings ratio of 16.25 and a beta of 1.76.
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Sonic Corp. declared that its Board of Directors has initiated a stock repurchase program on Wednesday, August 9th that permits the company to repurchase $160.00 million in outstanding shares. This repurchase authorization permits the restaurant operator to buy up to 16.2% of its shares through open market purchases. Shares repurchase programs are typically an indication that the company’s leadership believes its shares are undervalued.
In other news, Director Steven A. Davis acquired 2,000 shares of the company’s stock in a transaction that occurred on Wednesday, September 6th. The shares were bought at an average price of $23.00 per share, with a total value of $46,000.00. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. In the last three months, insiders purchased 5,000 shares of company stock worth $117,730. 6.24% of the stock is owned by insiders.
A number of large investors have recently made changes to their positions in SONC. Riverhead Capital Management LLC grew its stake in Sonic Corp. by 77.7% in the second quarter. Riverhead Capital Management LLC now owns 4,797 shares of the restaurant operator’s stock worth $127,000 after purchasing an additional 2,097 shares in the last quarter. Flinton Capital Management LLC grew its stake in Sonic Corp. by 74.5% in the second quarter. Flinton Capital Management LLC now owns 6,290 shares of the restaurant operator’s stock worth $167,000 after purchasing an additional 2,686 shares in the last quarter. Karp Capital Management Corp bought a new position in Sonic Corp. in the first quarter worth approximately $209,000. State of Alaska Department of Revenue grew its stake in Sonic Corp. by 72.7% in the second quarter. State of Alaska Department of Revenue now owns 8,378 shares of the restaurant operator’s stock worth $221,000 after purchasing an additional 3,528 shares in the last quarter. Finally, Aperio Group LLC grew its stake in Sonic Corp. by 1.4% in the second quarter. Aperio Group LLC now owns 8,348 shares of the restaurant operator’s stock worth $221,000 after purchasing an additional 119 shares in the last quarter.
About Sonic Corp.
Sonic Corp. operates and franchises the chain of drive-thru restaurants (Sonic Drive-Ins) in the United States. As of August 31, 2016, 3,557 Sonic Drive-Ins were in operation from coast to coast in 45 states, consisting of 345 Company drive-thrus and 3,212 franchise drive-thrus. As of August 31, 2016, its restaurant design and construction consisted of a kitchen housed in a one-story building, which was approximately 1,500 square feet, flanked by canopy-covered rows of 16 to 24 parking spaces, with each space having its own payment terminal, intercom speaker system and menu board.
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